The Morning Jumpstart


  • SPI200 (Sep) overnight futures up 46 pts to 6527
  • SP500 up 36.64 pts to 2924.58
  • NASDAQ up 116.51 pts to 7973.40
  • Dow Jones up 326.16 pts to 26,362.25
  • FTSE100 up 69.61 pts to 7184.32
  • DAX30 up 137.86 pts to 11,838.88
  • GOLD futures US Session (December) down $12.90 to $1536.20 an ounce
  • COPPER futures US Session (Comex Dec) up $0.0110 to $2.5760 a pound
  • OIL futures US Session (Nymex Oct) up $0.83 to $56.61 a barrel
  • CRB Index up 0.88 pts to 172.08
  • AUDUSD trading at 0.6728
  • EURUSD trading at 1.1057
  • GBPUSD trading at 1.2182
  • USDJPY trading at 106.5100
  • USD Index (ICE Sept) trading at 98.392 up 0.272

US Indexes opened strong and managed to hold the gains into the close following on from a positive European session. Buyers were fueled by comments from China and hopes for a trade deal. Chinas commerce ministry said Beijing and Washington were discussing the next round of face-to-face talks scheduled for September which spurred hopes for progress in the talks but also said any progress will be determined by whether Washington could create favorable conditions. The softer tone has given investors hope for lowering tariffs or even a resolution to the trade war in September. The DOW closed up 1.25% while the broader SP500 was up 1.27% and the Nasdaq ended up 1.48%. In Europe, Indexes bouyed by the China comments and also as it seems that Italy are close to forming a new government and resolving its political crisis.

US bond yields rallied on the back of trade optimism to take some pressure off the yield curve and expectations for a recession. The yield curve remained inverted although the latest news on the trade war reduced the safe haven bid into global sovereign debt.

The USD continued its move higher as risk went back in to the equity market. The Euro stayed the course lower as sellers took out lows around 1.1052 and now looks set to target lows around 1.1026. The GBP also continued to move lower being pressured by a higher USD and Brexit concerns and is looking to test lows around 1.2110. The AUD initially found a bid to rally hard on the back of China trade comments but then fell over into the start of the US session as the USD rallied. The USDJPY rallied as the dollar found strength and the safe haven YEN bid continued to exit the pair.

Gold took a nosedive around 4pm off $1559 as safe haven buyers locked away some gains and major stock Indexes took off. Price has pushed down through support at $1535 which may lead to a deeper correction if a higher low can not build. This will not bode well for Aussie gold stocks that are looking a little heavy. Oil benefited from the trade comments to lift on expectations for higher demand. The commodity now looks set to test up to the 57.50 zone if the buoyant tone continues. Copper initially spiked on trade news but then come off through the US session although did manage to end the session with some gains. The metal may continue to be lifted by expectations for a trade deal although the price action is not looking too convincing as price struggles to hold onto gains on spikes.

Cryptocurrencies held their lows as fear stalks the crypto market with expectations that Bitcoin will head lower. Bitcoin is currently trading at $9527.9 down 1.62% while Ethereum is at $169.40 down 1.24% and Ripple, performing better, is at $0.25850 up 1.89%.

The ASX200 had a choppy session yesterday as earlier on price had to fight for some direction before a run up into the close. In the end the Index finished up 6.8 points to 6507.4. There were no stand out sectors although Gold was the best performing while IT was the weakest sector for the day. Rising stocks outnumbered declining ones by 586 to 567 and 376 ended unchanged.

The ASX200 is expected to open up 45/50 points as the SPI200 moved up into resistance in the overnight session.


AUD Building Approvals 11:30am

EUR German Retail Sales 4pm

EUR CPI Data and Unemployment Rate 7pm

CAD GDP 10:30pm

USD Personal Spending and Income 10:30pm